Indonesia’s second largest cement maker PT Indocement Tunggal Prakarsa plans capacity expansion to meet domestic demand which is predicted to grow six per cent this year.
The company said it has decided to raise its capital expenditure to US$100m this year from US$75m set earlier.
The company will need up to US$60m for routine expenditures and around US$40m for the construction of two new mills in its factory in Citeureup, Bogor.
The new mills with a total capacity of 2Mt are expected to come on-stream in 2012, bringing the company’s total capacity to 17.1Mt, its President Daniel Lavalle said yesterday.
Indocement reported IDR786.36bn (US$86.5m) in net profit in the first quarter of this year, up 56 per cent from the same period last year.
Last year it posted IDR10.57trn in income, up 8.1 per cent form the previous year with net profit rising 57.3 per cent to IDR2.7trn.